Governor Hochul Ushers in New Era of Economic Growth, Innovation, and Good-Paying Jobs With FY27 Budget

Governor Hochul today announced bold steps to build a brighter future for New York by fueling innovation and creating good-paying jobs as part of her FY27 Budget. Since taking office, the Governor has ushered in a new era of economic growth by prioritizing job creation, community development and economic revitalization. From investing in innovative technologies to supporting small businesses, this forward-thinking strategy is shaping a resilient and inclusive economy that sets New York up to compete in technological advancement on the global scale for generations to come.

"I have been laser focused on expanding opportunities for all New Yorkers and with this Budget we are cementing New York as the center for innovation," Governor Hochul said. "We are strengthening New York's vibrant economy by investing in emerging technologies, revitalizing our communities, modernizing our agricultural industry and creating new jobs that will fuel growth for future generations."

Expanding New York's Chip Industry via Downstate Semiconductor Chip Design Center

New York is a national leader in semiconductor manufacturing - one of the most cutting-edge and critical industries for the 21st century economy. Semiconductors power everything from smartphones to satellites, and the sector is poised to generate revenues of $1 trillion globally by the end of the decade. As New York builds a thriving domestic semiconductor ecosystem, supporting world-class research and development (R&D) for larger established firms, there is room for expansion in early stage semiconductor chip R&D by tapping into aspiring startups who may lack access to early-stage chip design tools.

To both attract semiconductor manufacturers that are looking to invest in states with a robust chip innovation pipeline and support startups looking to be competitive in the space, Governor Hochul is investing $25 million to establish a downstate-based Semiconductor Chip Design Center. This initiative will focus on leveraging downstate's deep knowledge economy ecosystem to complement the already-robust chip manufacturing infrastructure upstate. The Center will be a world-class chip design facility, serving as an incubator to startup firms, training chip designers, and connecting startups to the larger semiconductor sector throughout New York State. By fostering the earliest stages of development, New York will establish itself as a leader in this essential technology and support further growth of downstream manufacturing.

Modernizing Manufacturing and Reshoring Jobs

New York's manufacturing sector is essential to the State's economic vitality, contributing more than $100 billion to the State's gross domestic product and employing approximately 400,000 New Yorkers. Governor Hochul is bringing manufacturing back to New York State, including landing one of the largest manufacturing projects in U.S. history with the Micron project in Central New York.

To build on this momentum and support job growth in the face of restrictive federal policy, Governor Hochul is directing Empire State Development to launch the $10 million Governor's Manufacturing Modernization Program to support the State's small and mid-size manufacturers. The program will establish a network of centers across the state focused on assisting small and mid-size manufacturers in adopting new technologies. These centers will provide technical assistance to small manufacturers as they incorporate AI into their operations, supply chain consultations to help businesses adapt to geopolitical and tariff impacts, and capital grants to modernize equipment or pivot to priority sectors, such as clean energy.

These actions will drive innovation while creating new family-sustaining jobs in manufacturing, ensuring that New York's homegrown companies remain competitive and resilient, and that the Governor's track record in reshoring manufacturing continues in a rapidly evolving global economy.

Building Our Quantum Edge Through Quantum Technology Commercialization Hubs

Quantum technology provides us with the ability to solve some of the world's most complex challenges faster than ever before. It has the potential to transform our world, revolutionizing whole industries. Practical applications include more secure financial transactions, advances in clean and renewable technology, and faster breakthroughs in drug discovery. Establishing New York's leadership in this emerging field also opens the door to significant economic growth. Globally, quantum technologies are projected to generate $97 billion in revenue by 2035.

Access to quantum infrastructure, however, remains highly restricted: systems are prohibitively expensive, testing environments are limited, and most companies lack the technical capacity to build or deploy quantum capabilities independently. Building on the momentum of the State's Quantum Research & Innovation Hub at SUNY Stony Brook, Governor Hochul is investing $60 million to establish up to four additional quantum hubs across New York that will serve as incubators and foster the development and commercialization of quantum technologies. These hubs will be regional anchors for quantum innovation, prioritizing commercialization of new inventions and real-world use cases. Each hub will host an incubator for quantum-focused startups, providing early-stage companies with critical resources, including mentorship and access to local quantum networks and quantum computing.

These actions will ensure that New York remains a global hub for innovation and is positioned to compete nationally and globally as quantum technologies mature and reach their full market potential.

Bolstering Biotechnology in New York State

New York's biotechnology and life sciences industry is an engine of economic growth. Research and development in biotech not only advances the public good, measured in groundbreaking advancements to cure disease, but also generates new high-paying jobs while opening pathways for entrepreneurs and startups. Building off the Governor's strategic investments in life sciences, including the creation of Cell and Gene Therapy Innovation Hubs on Long Island and in Western New York and the Biodefense Commercialization Fund to find new treatments for infectious diseases, Governor Hochul is launching a renewed investment to make New York the epicenter of life sciences innovation.

The Governor's $65 million Bolstering Biotech Initiative will support all phases of the life science sector pipeline, from discovery to commercialization, cementing New York's position at the forefront of biotech innovation.

These investments will accelerate the commercialization of life-changing therapeutics - with a focus on neurodegenerative disease - and catalyze private investment in biotechnology research and development through the following programs:

• Venture Capital Investments: Leveraging public and private venture investment to support promising startups with the potential to mature into the next generation of industry leaders
• Fellowships and Workforce Development: Seeding new skills-training programs designed to equip New Yorkers with the necessary skills to fill high-demand roles from production to c-suite in the biotech field, opening pathways to high-paying jobs for New Yorkers
• Commercialization Grant Program: Creating a new, performance-based grant program modeled on the State's successful Biodefense Commercialization Program to support companies in bringing biotech innovations to market in targeted areas such as neurodegenerative diseases
• Statewide Clinical Trial Consortium: Establishing a statewide clinical trial consortium to leverage the combined strengths of New York's research institutions to expand access to cutting-edge therapies and position the state as a premier destination for medical innovation

Together, these strategic investments will strengthen every step of the life science value chain, from initial research and development, to startup growth and workforce training, to large-scale industry attraction, to fostering collaboration amongst medical schools and industry leaders. Through the Governor's Bolstering Biotech Initiative, New York will accelerate innovation, scale promising companies, attract private capital, create good jobs, and build a skilled workforce to lead in biotech nationally and around the world.

Creating a New Office of Digital Innovation, Governance, Integrity & Trust (DIGIT)

Under Governor Hochul's leadership, New York has led the nation in embracing the opportunities of emerging technology while also taking novel action to protect New Yorkers from potential harms. The Governor has passed multiple first-in-the-nation laws to keep kids safe on social media, regulate frontier AI model developers, stop AI companion chatbots from encouraging suicide and self-harm, outlaw AI-generated child sexual abuse material, and bring transparency to AI-enabled corporate pricing practices. As our digital ecosystem continues to rapidly evolve, and in absence of responsible action by the federal government, Governor Hochul will ensure New York continues to pioneer new approaches to protecting consumers, voters and our youth.

Building on New York's role as a national leader in AI regulation and online safety, Governor Hochul is now creating a first-of-its kind Office of Digital Innovation, Governance, Integrity, and Trust (DIGIT). DIGIT will serve as a central, authoritative body for digital safety and technological governance, devising new approaches and ensuring consistent enforcement to keep New Yorkers safe online; while protecting New York's position as a state that values and invests in cutting edge innovation. The DIGIT Office will first focus on regulating large frontier AI developers, enabling greater transparency into their safety measures and establishing a reporting mechanism for developers to report critical safety incidents.

Enhancing Local Economic Development Project Tracking

Industrial development agencies and authorities (IDAs) are crucial vehicles for advancing economic development, housing and other priorities statewide, reporting over $900 million in net tax exemption in 2024 alone. However, monitoring those investments can be challenging due to inefficiencies in the State's legacy tracking system. Local authorities are also leaving money on the table by not appropriately monitoring sales tax exemptions.

This Budget includes $6 million for overhauling the current system and replacing it with a well-developed, better-equipped analysis tool will enhance transparency, integrity, and efficiency, while also providing oversight data and allowing local authorities to better communicate project outcomes.

Enhancing the Downtown Revitalization Initiative and New York Forward

The State's Downtown Revitalization Initiative provides funds to revitalize and enhance downtown neighborhoods across the state, supporting infrastructure development, public transportation, job creation, and economic activity. New York Forward similarly provides funds for downtown revitalization, but targets resources to smaller and rural communities such as villages and hamlets. The FY27 Budget includes a renewed $200 million investment in these programs to continue to help communities develop downtown neighborhoods into vibrant centers that offer a high quality of life and are magnets for business, job creation, and economic and housing diversity.

Revitalizing Commercial and Residential Properties

The Restore New York Communities Initiative (Restore NY) supports efforts to reduce blight, spur new investments and encourage community revitalization. The FY27 Budget includes $50 million to provide financial assistance for projects involving the demolition, deconstruction, rehabilitation and/or reconstruction of vacant, abandoned, condemned and surplus properties.

Redeveloping Underutilized Land into Housing

The only way to address the housing crisis across the state is to build more housing, and that includes redeveloping underutilized State-owned land into housing, dormitories and amenities. The FY27 Budget includes legislation to facilitate housing development at Conklin Street in the Town of Babylon on Long Island, Farmingdale State College's campus, Stony Brook University's Southampton campus and SUNY College of Environmental Science and Forestry's campus in Syracuse.

Facilitating Development of New Airport Terminal on Long Island

Governor Hochul signed legislation to allow the Town of Islip and a private developer-operator to construct a new terminal at Long Island MacArthur Airport using design-build, along with a new pedestrian walkway to directly connect the LIRR Ronkonkoma station to the new terminal.

Commemorating the 250th Anniversary of the American Revolution and the History of New York

This year marks the 250th anniversary of the American Revolution, presenting a historic opportunity to commemorate New York's history and reflect on our future. New York State's preparations to observe the importance of the Revolutionary War period leads the nation, with more than $75 million in completed, underway, or planned investments at dozens of New York State Parks Revolutionary War sites across the state.

To commemorate the rich and diverse history of New York, Governor Hochul secured $7 million to launch the creation of the New York History Preservation and Resource Center (History PaRC). This ambitious project will convert the existing Division for Historic Preservation's headquarters on Peebles Island State Park in Waterford into a cutting-edge public history hub. The History PaRC's facilities will be designed to vastly improve public access to New York's historic collections and preservation programs with the goal of inspiring life-long learning and appreciation of New York's history. Beyond public exhibition space, it will also function as a collaborative center for training and workshops, historical research, and will foster greater cooperation among state agencies and cultural organizations.

Investing in Equity Across the Cannabis Supply Chain

Across the cannabis supply, the Governor is supporting programs to build business opportunities that move beyond issuing licenses and start up supports and instead focus on long term sustainability, continuing our success as the most equitable cannabis market in the country. The Governor is committing $25 million for the Community Grants Reinvestment Fund, which seeks to address the harms of past drug policies by reinvesting adult-use cannabis tax revenue into communities that faced disproportionate enforcement of prior drug laws. The State will be increasing staffing resources to shut down the illicit market and enforce against trade practice violations, and providing $10 million to businesses across the State to cover costs of implementing the seed to sale tracking program, which ensures products sold in New York are grown and manufactured here and meet the highest possible public health standards.

Supporting Dairy Farmers To Modernize the Industry

Since taking office, Governor Hochul has presided over an unprecedented expansion of the dairy manufacturing sector in New York. The State has celebrated investments across the state, including a $650 million fairlife production plant in Webster, a nearly $30 million expansion of the Agri-Mark cheese manufacturing facility in Chateaugay, a new $1.2 billion Chobani yogurt manufacturing facility in Rome, Wells Enterprises' $425 million ice cream manufacturing facility in Dunkirk, and more, reinforcing New York's status as the leading milk producer in the Northeast. There are currently nearly 300 globally recognized dairy processing plants statewide.

Linking dairy farming and production with manufacturing and processing entities will create a virtuous economic cycle, benefiting farmers, dairy sector workers, and consumers alike. However, dairy farmers are facing a complex constellation of challenges, including tariffs on feed, aging infrastructure, rising operating costs, and ongoing supply chain challenges that make it harder for farms to plan and invest for the future.

Governor Hochul is expanding support for dairy farmers by advancing another round of the Dairy Modernization Program and extending the refundable investment tax credit to give farms the time and certainty needed to modernize operations and complete major projects. Extending the refundable investment tax credit will also provide farmers with necessary financial support to offset the increased costs of doing business caused by federal tariffs. These actions will help farmers upgrade on-farm storage and processing systems, improve efficiency and milk quality, and continue investing in equipment and facilities despite tight margins and market volatility. By strengthening the dairy supply chain and supporting rural communities across the State, New York will protect jobs, ensure a stable food supply, and secure the long-term competitiveness of its dairy industry.

Developing the Industrial Hemp Pipeline

As Governor Hochul stated in her 2024 State of the State address, New York is committed to growing its bioeconomy - including the hemp industry - in order to create jobs and support farmers across the State. To support New York's hemp farmers in diversifying their supply chains in the face of a changing federal context and provide additional R&D efforts towards the industry with a focus on sustainable and affordable building materials, Governor Hochul is establishing a statewide network of programs and assets focused on developing the industrial hemp pipeline end to end. A research and development consortium across five New York universities will pilot the complete green economy for industrial hemp from cultivation and fiber processing to product manufacturing and construction, culminating in the construction of a barn that serves both as a processing facility and a workforce training center. Together, these actions will grow our bioeconomy and support farmers across the state.

Establishing New York as the Nation's Hard Cider Capital

New York is the country's leading hard cider producer, boasting more active cideries than any other state. Our cider industry has grown substantially over the last ten years, generating more than a billion dollars in total economic impact for New York, yet there still remains untapped agri-tourism potential to explore.

To support the industry and tap into the robust agri-tourism opportunity that cider presents, Governor Hochul is working with the New York Cider Association to establish New York as the State of Cider, marketing the orchards, tasting rooms, and food experiences that could become anchor destinations for visitors across the country. These actions will strengthen rural economies, uplift the exceptional work of local businesses, and establish New York as the foremost destination for American hard cider.

Governor Hochul's Record of Economic Growth

Governor Hochul is building a brighter future for New York. Since taking office, the Governor has ushered in a new era of economic growth by prioritizing job creation, community development and economic revitalization. From investing in innovative new technologies to supporting small businesses, this forward-thinking strategy is shaping a resilient and inclusive economy that sets us up to compete on technological advancement on an international scale now, and for generations to come. During her time in office, Governor Hochul has:

• Established New York as a leader in semiconductor innovation, recently breaking ground on a new semiconductor research and development facility at the NY Creates Albany Nanotech Complex.
• Transformed the life science sector by establishing two new Cell and Gene Therapy (CGT) Innovation Hubs on Long Island and in Western New York. These centers are poised to revolutionize patient care by fast-tracking CGT research and commercialization, ensuring life-changing new therapies are developed in New York.
• Deployed AI for the public good by launching Empire AI, a landmark public-private consortium, which expands access to AI supercomputing for New York's leading universities and research institutions, strengthening innovation with a public benefit and enhancing New York's position as a global leader in responsible AI.
• Created multiple programs to remove barriers for small businesses through the $500M State Small Business Credit Initiative, focusing on equitable venture investments, affordable borrowing programs, and capital access programs.

Governor Hochul remains committed to growing New York's vibrant economy, bringing jobs back home, revitalizing communities, and cementing New York as the center for innovation.